A Family Approach To The Law

Will I lose all my assets if I file Chapter 7 bankruptcy?

On behalf of of Lynch Law Offices, P.C. posted in Chapter 7 on Monday, December 24, 2018.

You are in debt and you need relief fast. Your income is limited and you have assets but they do not have a lot of monetary value. While they may not be worth much, you still want to know if you will lose your assets if you pursue a Chapter 7 bankruptcy. Guess what? Thanks to exemptions offered in Illinois, you may be able to keep your property.

Generally, when you file a Chapter 7 bankruptcy, your assets are sold to pay off your creditors and then any remaining qualifying debt is discharged. Now, depending on the asset and any state exemptions, some assets may not be worth selling because creditors will get practically nothing out of it. In such cases, the bankruptcy trustee may choose to abandon the property -- meaning you get to keep it.

After a careful case review, legal counsel can help you determine if you qualify for a no-asset Chapter 7 filing. The procedures for filing are the same as a typical Chapter 7, but at the end of it all, you will get to keep your property and still have your qualifying debts discharged. Quite a few Chapter 7 cases end up being no-asset cases.

Keeping your property and having all or most of your debt wiped out may seem too good to be true, but it may actually be an option for you. You will not know, though, until an experienced bankruptcy attorney really looks into your financial situation. If you want to learn more about the benefits of Chapter 7 bankruptcy, what it takes to qualify in the state of Illinois and how an attorney can be of assistance to you when in need of debt relief, please take a moment and visit our firm's website.

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